GRE RENEW ENERTECH PRIVATE LIMITED (formerly known as GRE Electronics Private Limited) Independent Auditor's Report:
**Opinion:**
The auditor has audited the consolidated financial statements of GRE Renew Enertech Private Limited ("the Company") and its wholly-owned subsidiary D K USA INC ("the Group"). The audit encompasses the Consolidated Balance Sheet as of March 31, 2024, the Consolidated Statement of Profit & Loss, and the Consolidated Cash Flow Statement for the year then ended, along with a summary of accounting policies and other explanatory information.
In the auditor's opinion, the consolidated financial statements provide a true and fair view of the state of affairs of the Group as of March 31, 2024, and of the Consolidated Profit and its Consolidated Cash Flows for the year ended on that date, in accordance with accounting principles generally accepted in India and the requirements of the Companies Act, 2013.
**Basis for Opinion:**
The audit was conducted in accordance with the Standards on Auditing (SAs) prescribed under Section 143(10) of the Companies Act, 2013. The auditor is independent of the Group, fulfilling ethical requirements under the Code of Ethics issued by the Institute of Chartered Accountants of India and the Act. The audit evidence obtained is considered sufficient and appropriate to support the auditor's opinion.
**Key Audit Matters:**
Key audit matters are not applicable as the company is an unlisted company, so reporting of key audit matters as per SA701 is not applicable.
**Management's Responsibility:**
The Holding Company's Board of Directors is responsible for preparing consolidated financial statements that give a true and fair view of the consolidated financial position, performance, and cash flows of the Group in accordance with accounting principles generally accepted in India. This includes maintaining adequate accounting records, safeguarding assets, preventing fraud, selecting appropriate accounting policies, making reasonable estimates, and maintaining adequate internal financial controls. The Board is also responsible for assessing the Group's ability to continue as a going concern and overseeing the financial reporting process.
**Auditor's Responsibility:**
The auditor's objectives are to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes their opinion. This involves exercising professional judgment, maintaining professional skepticism, identifying and assessing risks of material misstatement, designing and performing audit procedures, and obtaining an understanding of internal control relevant to the audit.
**Other Legal and Regulatory Requirements:**
The auditor also reports that:
* They have obtained all necessary information and explanations for the audit.
* Proper books of account have been kept by the Group as required by law.
* The Consolidated Balance Sheet, Statement of Profit and Loss, and Cash Flow statement are in agreement with the books of account.
* The consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act.
* None of the directors are disqualified from being appointed as a director.
* The Company has used accounting software with an audit trail facility, which has operated throughout the year without being tampered with.
* The Group does not have any pending litigations that would impact its financial position, nor any long-term contracts with material foreseeable losses, and no amounts are required to be transferred to the Investor Education and Protection Fund.
* The management has represented that no funds have been advanced or loaned to intermediaries with the understanding that they would be lent or invested in ultimate beneficiaries, or provide any guarantee on behalf of ultimate beneficiaries.
* The Group did not declare or pay any dividend during the year.
There are no qualifications or adverse remarks in the CARO reports.
**Annexure 'A' to the Independent Auditors' Report:**
This section details the report on internal financial controls over financial reporting.
The auditor has audited the internal financial controls over financial reporting of GRE RENEW ENERTECH PRIVATE LIMITED as of March 31st, 2024, in conjunction with their audit of the Company for the year ended on that date.
The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company, considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India ("ICAI").
The auditor's responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on their audit, conducted in accordance with the Guidance Note and the Standards on Auditing prescribed under Section 143(10) of the Companies Act, 2013.
In the auditor's opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2024.
**Consolidated Balance Sheet Highlights:**
As of 31st March 2024:
* Share Capital: INR 12,500,000
* Reserves and Surplus: INR 199,026,800
* Long-Term Borrowings: INR 19,677,485
* Short-Term Borrowings: INR 25,991,473
* Trade Payables: INR 56,037,81
* Total Equity and Liabilities: INR 491,191,196
* Property, Plant, and Equipment: INR 120,463,80
* Non-Current Investments: INR 10,050,000
* Inventories: INR 48,107,039
* Cash and Cash Equivalents: INR 62,991,327
* Total Assets: INR 491,191,196
**Consolidated Statement of Profit & Loss Highlights:**
For the year ended 31st March 2024:
* Revenue from Operations: INR 903,400,975
* Other Income: INR 16,972,224
* Cost of Materials Consumed: INR 697,184,831
* Employee Benefits Expenses: INR 21,173,507
* Finance Costs: INR 3,889,777
* Depreciation and Amortization: INR 2,695,759
* Profit After Tax: INR 98,705,301
* Earnings per Share: INR 79.00
* Net Profit Margin 10.93%
* Return on Capital Employed 39.79%
* Return on Investment 3.07%
**Cash Flow Statement Highlights:**
For the year ended 31st March, 2024:
* Cash Flow From Operating Activity: INR 6,001,133
* Cash Flow From Investment Activity: (INR 81,977,702)
* Cash Flow From Financing Activity: (INR 57,51,878)
* Net Decrease in Cash: (INR 4,606,1753)
* Closing Cash & Bank Balance: INR 62,991,327
**Significant Accounting Policies and Disclosures:**
The financial statements are prepared in accordance with Indian GAAP. Key policies include:
* Consolidation: The financial statements of the Company and its subsidiary are combined on a line-by-line basis, eliminating intra-group balances and transactions.
* Foreign Currency Translation: Assets and liabilities of the Group's entities with functional currencies other than Indian rupees are translated using exchange rates prevailing at the end of each reporting period.
* Fixed Assets: Fixed assets are carried at cost less accumulated depreciation/amortization and impairment losses.
* Depreciation: Depreciation is provided on the Written Down Value Method as per Schedule II to the Companies Act, 2013.
* Inventories: Raw materials are valued at cost, while work-in-progress and finished goods are valued at contracted rates less profit margin/estimates.
* Revenue Recognition: Revenue and expenditure are recognized on an accrual basis.
**Share Capital:**
* The details of Authorized, Issued, Subscribed and Paid-up share capital, details of shareholders holding more than 5% of equity shares, and change in percentage of promoter shareholding are disclosed.
**Reserves and Surplus:**
* The details of reserves and surplus including Profit & Loss account, and their movement is provided.
**Long Term Borrowings:**
* The details of secured and unsecured long-term borrowings are disclosed, along with the maturity profile.
**Related Party Transactions:**
Details of transactions with related parties, including the nature of the relationship, transaction amounts, and outstanding balances, are disclosed.
**Financial Ratios:**
Key financial ratios are provided, including the current ratio, debt-equity ratio, debt service coverage ratio, return on equity ratio, and inventory turnover ratio. A table shows the numerical value of the ratios, the method used to derive those numbers, and the percentage change year over year.
